California: Tax credit for EVs. No, Tesla, not you.
-
Tesla Inc.’s electric vehicles would be shut out from consumer rebates under a proposal by California Governor Gavin Newsom, pitting the prospective Democratic presidential hopeful against Republican power player Elon Musk.
Newsom on Monday unveiled plans to offer rebates to EV buyers if US President-elect Donald Trump repeals a federal subsidy. A program California phased out in 2023 could be rebooted in lieu of the $7,500 tax credit, the governor said.
His office told Bloomberg News that the current proposal includes market-share limitations that would exclude Tesla’s popular EV models. The details — including Tesla’s possible omission from the credits — will be negotiated with the state legislature and could change, Newsom’s office said.
“It’s about creating the market conditions for more of these car makers to take root,” according to the governor’s office. It wasn’t immediately clear if other automakers would be excluded.
Musk, Tesla’s billionaire chief executive officer, posted on his X social-media platform that the proposal was “insane,” citing the automaker’s manufacturing presence in the state.
The move would leave market-leading Tesla out of a key incentive program aimed at spurring wider adoption of EVs at a time of slowing growth for all-electric vehicles. Tesla’s models do qualify for the federal credit, which was introduced as part of President Joe Biden’s signature climate bill, the Inflation Reduction Act.
Excluding Tesla could burnish Newsom’s standing on the left as he renews a clash with Musk, who has become a member of Trump’s inner circle and accepted a role helping the incoming administration cut government spending. Musk has said he’s fine with federal subsidies going away.
Fascist.
-
I thought that US tax credits worked the same way. After a company sold X number of vehicles, they would not longer be eligible.
-
Depends on the motivation. Are you trying to encourage new entrants or trying to encourage EV take up?
One would think the original goals of these programs was the latter. They’re stating that the goal of this program is the former.
Wouldn’t shock me at all to find out it’s anti-Musk motivated.
-
It’s never a good idea to punish success and incentivize mediocrity. That is what this program does at its core.
It’s particularly a dumb idea to punish the success of a company that manufactures their cars in your fucking state and employees over 40K of your states population…
